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In 1960, Congress passed a law creating Real Estate Investment Trusts (REITs), big portfolios of income-producing property investments. A REIT is required by law to distribute 90 percent of its earnings to investors every year. Today, an estimated 70 million Americans invest in REITs.

Due to their special tax status, REITs should follow rigorous compliance standards and therefore carry a certain quality standard for the vehicles investment strategy and the property experience of the managing team.

There are two primary kinds of people REITs: traded and non-traded. Publicly-traded REITs offer the benefits of money, since it's traded openly on a stock exchange. However, this liquidity is very likely to be priced into the worth of the stocks, resulting in a liquidity premium, or a price that all investors pay for the ability to buy and sell the asset whenever they desire.

What's more, publicly-traded REITs tend to be correlated to broader market volatility, meaning that the share value may fluctuate depending on how the stock exchange is doing, regardless of whether or not anything has changed with the underlying properties owned by the REIT. .

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On the other hand, public non-traded REITs are becoming more popular, because of their potential double dividends. But, public non-traded REITs have recently come under heavy scrutiny because of the large upfront fees often charged to investorsand dubious practices around the disclosure of these fees.

In the last couple of decades, pioneering new platforms such as Fundrise have emerged. Fundrise aims to offer you the benefits of personal market access, but with reduced fees that potentially help investors earn better returns. Leveraging technology and new national regulations, Fundrise offers investors that the first ever diversified commercial property investment portfolio available directly online to anyone in the United States, no matter their net worth.

Irrespective of which investment strategy you opt to pursue to earn residual income, an essential portion of the investment procedure is careful due diligence of each opportunity as it arises and working hard to eliminate any pre-existing biases. Take time to figure out which strategy makes the best sense for youpersonally, and carefully compute your residual income goals.

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When looking at income in the future, shouldnt we're looking at what is going to happen and determine whether that is what we want life to seem like We need to work backward from that point until we achieve now, viewing our decisions with money as the pre-cursor of tomorrow The reason we even talk about residual income is the goal of retirement or what we Home Page prefer to call time liberty. .

When you retire, your Social Security income plus pensions, if they're left, and dividends and interest off of your investments and maybe an income annuity will fulfill your needs and hopefully exceed them, so that you can walk away from your day job.

Dividends and interest are a sort of residual income. Social Security certainly is, that the government takes money from us every paycheck and we get a little piece back when we retire (even though it is taxed in retirement again).

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So, if the goal is to have residual income when we retire, that seems based on Social Security rules to only be possible in our 60s, and the government has mandated penalties before taking our money before 59.5, wouldnt it be prudent to start investing in resources of residual income now that perhaps dont have an age limitation into our 60s What guarantee do we have that we'll make it that long.

Furthermore, what control do we really have over Social Security and our 401Ks Looking at the sources of residual income, lets take a look at other high tech places we can diversify. Who knows, maybe you could begin generating residual income now and step into that time freedom sooner than your 60s.

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Taking stock of where you're at is so crucial. Are you currently doing one of dig this these seven Dont be confused, not all businesses or investments are residual, in our opinion.

Residual income has two actual definitions. Lets look at these first. Residual Income is income that continues to be generated after the initial effort has been expended. Compare this to what the majority of people focus on earning: linear income, which is one-shot compensation or payment in the kind of a fee, wage, commission or salary.

We think that income which exceeds your expenses is called PROFIT! So, we are going to use the first definition for the sake of this document. .